The CarTrawler Worldwide Estimate of Ancillary Revenue

Ancillary revenue continues to be a consistent and predictable revenue driver for airlines in the face of unpredictable fare price fluctuations.  Although the global airline industry is yet to fully recover post-Covid and return to the heights of 2019, 2023 is expected to see ancillary revenue reach a record high of $117.9 billion worldwide – up from the previous record of $109 billion in 2019 – demonstrating the increasing importance for airlines to identify additional revenue streams.

Low-cost carriers continue to have the edge on driving ancillary revenue streams, accounting for approximately 31% of market share in this area. However, we are increasingly seeing US airlines gaining momentum with the successful roll out of loyalty programmes and frequent flyer benefits. I expect airlines in Europe and the rest of the world are taking note of this development and evidence of the real returns it’s bringing in terms of yield.

As we see passenger numbers continue to rise, we expect airlines to continue to pivot and devise new ancillary revenue streams. Within our own partner base at CarTrawler, we’re seeing greater demand for the inclusion of car rental services in loyalty programmes, so airlines and hotel groups can reach a wider customer base with the most relevant rewards. Next year, we expect this area of our business to expand further as we continue to invest and deliver on our company strategy, by enhancing our proposition through innovation.

Aileen McCormack, Chief Commercial Officer at CarTrawler